London Councils are calling on the government to provide additional funding to enable the construction of 50,000 new council homes in the capital. Research by London Councils indicates that these homes could be built if sufficient financial support is made available.
The borough submissions to the London Social and Affordable Homes Programme (LSAHP) outline a potential pipeline of more than 50,000 council homes between 2026 and 2036. This would increase London's current council housing stock of approximately 390,000 homes by almost 15%.
To realise these plans, London boroughs estimate a need for £12.3 billion in grant funding. With the LSAHP currently allocated £11.7 billion for the period, there is a potential shortfall of £600 million against the requested funding.
Councillor Anthony Okereke, London Councils’ executive member for Housing and Homelessness, stated that these figures demonstrate boroughs’ commitment to building new council housing. He added that increasing the number of council homes is crucial for addressing London's housing and homelessness emergency.
London Councils are also advocating for reforms to nationally set rules governing Housing Revenue Accounts (HRAs). They propose an urgent reassessment of the 2012 HRA debt settlement, changes to allow councils access to lower-cost lending, and a London Formula Rent reset. These reforms, they suggest, would strengthen boroughs’ finances and enhance their capacity to invest in council housing.